McHenry Times

City of Crystal Lake City Council met June 21.

Here are the minutes provided by the council:

Call to Order

Mayor Haleblian called the meeting to order at 7 :00 p.m.

Roll Call

Mayor Haig Haleblian, Councilmembers, Ellen Brady, Brett Hopkins, Mandy Montford and Ian Philpot were present. Councilmember Cathy Ferguson attended the meeting telephonically. City Clerk Nick Kachiroubas and Councilmember Cameron Hubbard were absent.

City Manager Gary Mayerhofer, Deputy City Clerk Eric Helm, City Engineer Abigail Wilgreen, Director of Community Development Kathryn Cowlin, Finance Director Jodie Hartman, and Chief of Police James Black. City Attorney John Cowlin was also present. Special Legal Counsel Victor Filippini was present via teleconference.

Approval of Councilmember Ferguson Telephonic Attendance

Councilwoman Brady moved to approve Councilmember Ferguson's telephonic attendance of the City Council Meeting. Councilman Philpot seconded the motion. On roll call, all present voted yes. Motion passed.

Pledge of Allegiance

Mayor Haleblian introduced the Kuczera family, who has a son currently serving as a Major in the Air Force. Nicolas Kuczera graduated in 2005 from Crystal Lake South, and has served as an air battle manager in several campaigns. He is currently stationed in Oklahoma with his wife and two children.

Approval of Minutes

Councilwoman Ferguson moved to approve the minutes of the June 7, 2022 Regular City Council Meeting. Councilman Hopkins seconded the motion. On roll call, all present voted yes. Motion passed.

Accounts Payable

Councilwoman Ferguson moved to approve the Accounts Payable in the amount of $1, 110,851.34. Councilman Hopkins seconded the motion. On roll call, all present voted yes. Motion passed.

Public Presentation

Mayor Haleblian asked if there was anyone in the public who wished to make a public presentation regarding an item not on the agenda.

Chuck Stump, resident of 440 Lake Avenue and Library Board member, introduced Becky Fyolek, new Executive Director of the Crystal Lake Public Library. Ms. Fyolek, who has been the head of Youth Services for the past 5 years, provided the Mayor and City Council with an update of upcoming Library programming.

Mayor Haleblian welcomed Ms. Fyolek.

Kelly Platt, resident of 1393 Boxwood Drive, shared concerns with the Mayor and City Council regarding the condition of a property at 1396 Boxwood, which was destroyed by fire in April. He said the property is a blight on the neighborhood and needs to be boarded-up and demolished. There is standing water in the backyard and motor and diesel fuel in the garage.

Mayor Haleblian thanked the residents for bringing this to the City Council's attention. No one else wished to speak.

Mayor's Report

Mayor Haleblian wished everyone a safe and happy Independence Day holiday.

City Council Reports

None.

Consent Agenda

Councilwoman Brady moved to approve a Consent Agenda, including Items 9a, 9b, 9c, 9d and 9e, and adding Items 10, 13, 14, 15, and 16. Councilman Hopkins seconded the motion.

Mayor Haleblian asked if anyone wished to speak on the Consent Agenda. No one wished to speak. On roll call, all present voted yes. Motion passed.

9a. Approved the Crystal Lake Water Ski Association's Special Event requests for their 2022 Tournaments to be held on July 10, August 7 and September 4 pursuant to the conditions recommended in this agenda supplement, and a waiver of no-wake restrictions on Crystal Lake.

9b. Approved the St. Thomas the Apostle Church's application for a Special Event for an outdoor mass and picnic, including the closure of part of Lake Street, on Sunday, July 31, 2022, pursuant to the staff recommended conditions.

9c. Approved the St. Thomas the Apostle Church's application for a Special Event Permit for a picnic, including the closure of part of Lake Street, on Saturday, July 16, 2022, pursuant to the staff recommended conditions.

9d. Reappointed Cary Wax/er, Bonita Drew and Mary Fisher to the Library Board for terms ending June 30, 2025.

9e. Cancelled the July 5, 2022 Regular City Council Meeting.

10. Approved the Planning and Zoning Commission (PZC) recommendations and adopted an Ordinance granting a Final Planned Unit Development (P UD) Amendment and Variation/or General Kinematics at 5050 Rickert Road.

13. Approved the Planning and Zoning Commission (PZC) recommendations and adopted an Ordinance granting the Special Use Permit (SUP) Amendment to allow for new free standing signs with variations to the height and square footage and new wall signage for the Northwestern Medicine facility at 200 Congress Parkway.

14. Adopted a Resolution authorizing the City Manager to execute the Smithtana Road Intergovernmental Agreement with Algonquin Township Highway Department.

15. Adopted a Resolution authorizing the City Manager to execute an Intergovernmental Funding Agreement with the Commuter Rail Division of the Regional Transportation Authority (Metra) for the Crystal Lake Depot Train Station Lighting Repairs and Upgrades including grant funding by Metra in the amount of $25, 000 to perform the station lighting repairs and upgrades.

16. Awarded the bid for the Crystal Lake Depot Train Station Lighting Repairs and Upgrades to the lowest responsive and responsible bidder, Associated Electrical Contractors, LLC and adopted a Resolution authorizing the City Manager to execute a contract with Associated Electrical Contractors, LLC for Crystal Lake Depot Train Station Lighting Repairs and Upgrades in the amounts bid.

11. Manufacturing Job Creation and Investment Grant Program Matching Grant application request for General Kinematics requesting $10,000 in matching grant funds

Community Development Director Kathryn Cowlin provided the Mayor and City Council with an overview of the request. Mayor Haleblian asked if anyone from the public would like to speak on the request. No one wished to speak.

Tom Musschoot, President of General Kinematics provided an overview of the expansion and the positive impact it will be for the business and community.

Councilwoman Brady moved to award $10,000 in Manufacturing Job Creation and Investment Grant Funds to General Kinematics, 5050 Rickert Road, and to adopt a Resolution authorizing the City Manager to execute the Grant Agreement with General Kinematics. Councilwoman Montford seconded the motion. On roll call, all present voted yes. Motion passed.

Mayor Haleblian said he was happy to have General Kinematics in Crystal Lake, and thanked General Kinematics for all they do for the community.

12. Retailer Facade and Commercial Tenant Improvement Grant Funds request for Jalsa Bar & Restaurant, located at 1295 Randall Road, Suite 112, requesting up to $5,000 in matching grant funds

Community Development Director Kathryn Cowlin provided the Mayor and City Council with an overview of the request.

Mayor Haleblian asked if anyone from the public would like to speak on the request. No one wished to speak.

Councilwoman Brady moved to award $5,000 in Retailer Fa~ade and Commercial Tenant Improvement Grant Funds to Jalsa Bar & Restaurant, 1295 Randall Road, Suite 112, and to adopt a Resolution authorizing the City Manager to execute the Grant Agreement with Jalsa Bar & Restaurant. Councilwoman Montford seconded the motion. On roll call, all present voted yes. Motion passed.

17. TIF Public Hearing-Public Hearing for the proposed Water's Edge Tax Increment Financing (TIF) District

Mayor Haleblian opened the Public Hearing for the proposed Water's Edge Tax Increment Financing (TIF) District and asked Community Development Director Kathryn Cowlin to introduce the project. Ms. Cowlin said Special Legal Counsel Vic Filippini was present via teleconference should there be any questions regarding the item and Lee Brown, President of Teska Associates and the City's TIF consultant was also present to give a presentation on the proposed draft TIF Redevelopment Plan and Program.

Ms. Cowlin stated that a Public Hearing is the next step in the TIF District consideration process. She said it has been long-noted that the City has desired redevelopment of the area included in the district, noting mixed-use development of the area within the boundary of the proposed district is included in the City's 2030 Comprehensive Plan.

Ms. Cowlin said the Joint Review Board (JRB) met on May 18, 2022 to review and make a recommendation on the draft TIF Redevelopment Plan and Program. A representative from School Districts 155 and 47, City of Crystal Lake, Crystal Lake Park District, a member of the public and McHenry County attended the JRB meeting. The Board ultimately unanimously recommended approval of the draft Plan as amended and noted in the JRB report.

Mr. Brown provided an overview of Tax Increment Financing, and how the program works. Programs help promote private investment and economic development in areas consistent with the comprehensive plan, and help prevent blight. He provided an example of how a base property value of a TIF District generates taxes for all jurisdictions, but the added increment only goes into the TIF District itself. The property value at the end of the TIF district would increase substantially, increasing the amount of tax collected for all jurisdictions.

Mr. Brown reviewed the boundaries of the proposed TIF District, which would help develop the area. He reviewed six eligibility criteria, out of 12 outlined in TIF legislation, that have been met for the proposed district. He explained at least five criteria must be distributed to a reasonable extent among the properties in the district, and then a district is qualified.

Next, Mr. Brown discussed the second step in the establishment of a TIF District, the creation of a redevelopment plan, which includes the identification of eligible costs for public improvements within the area to encourage private investments. Estimates are prepared for public improvement costs and included in a budget for the District.

Mr. Brown also reviewed the cost estimates impact on taxing jurisdictions.

Mr. Brown said the City Council is not being asked to approve the District tonight, but within a 14 to 90 day window, the City Council can chose to approve the District, by passing three Ordinances.

Councilwoman Montford asked Mr. Brown what contributed to the changes to EA V of the time period reviewed as part of the process. Mr. Brown had said the changing uses in the marketplace, as well as the reduction in the number of malls and online shopping.

Mayor Haleblian asked if the zoning had changed in the proposed district. Mr. Brown said not at this point, but he sees not only commercial uses as part of the District.

Mayor Haleblian asked if anyone in the public would like to comment regarding this item.

Don Kountz, resident of 1550 W. Crandon Court, said he questions if the Water's Edge Development qualifies to be a TIF District. He said he only had two documents to review to help him make this decision, the document created by Teska and Planning and Zoning information regarding the proposed plan from the City website. He said the Teska document is supposed to accurately describe eligibility criteria and enhancement to the project area.

Mr. Kountz said he expanded the property and added ownership information and dates acquired. He said he sorted property PINs that would be redeveloped, not being redeveloped, and exempt properties. One property development company owns all the properties, Lynwood Development.

Mr. Kountz said he does not understand what blight is "reasonably distributed throughout the area." He said the blighted areas are not the areas that will be redeveloped by Lynwood Development.

Mr. Kountz said the real issue is declined EAVs. He said EAVs did not necessarily decline, but instead corrected themselves. He stated that buildings had been taken down and so values decreased.

Mr. Kountz reviewed the 2022 EA V data for the proposed uses for the plan - condominiums and townhomes, hotel, restaurant and grocery uses. He said he does not think the development is a $90 million development as indicated.

Mr. Kountz said he also cannot find any violations for the properties in the proposed district. He said although there are vacant properties, they are not being advertised for rent and they have not been for some time.

In conclusion, Mr. Kountz said he thinks the project is good for Crystal Lake, but does not think it qualifies as a TIF District, not meeting the necessary criteria. He said the blight determination is subjective, the references for information are not complete, the property owner has not maintained the property for the past several years.

Mr. Kountz stated he provided a written objection this morning to the City Clerk as required by the public hearing notice in the Northwest Herald.

Mayor Haleblian asked if anyone else wished to speak. No one else wished to speak. Mayor Haleblian closed the public hearing.

Mayor Haleblian asked if there are any questions from the City Council.

Councilman Hopkins asked if Special Legal Counsel Vic Filippini would speak regarding the proposed TIF Plan.

Mr. Filippini explained that a TIF Plan is a framework for a picture, but does not paint the entire picture. He said the State of Illinois does not require the inclusion of specific categories/uses in the cost estimates within a TIF Plan.

Mr. Filippini said the City Council would have to make a determination regarding the boundaries of the proposed district. He recommended taking a global look at the properties and if they were suitable for redevelopment.

Mr. Filippini said he has worked with Mr. Brown and Teska Associates and they have a very good grasp on the TIF legislation and requirements. He indicated the EA V data would change over time; the draft report was utilizing data from the Fall 2021. He said the EAV values in the report are a solid estimate for the proposed properties.

Mr. Filippini said the database that Mr. Kountz had searched regarding violations was not all-inclusive. He said the buildings had been torn down due in part to poor conditions.

Overall, Mr. Filippini said he did not feel that any of the concerns discussed by Mr. Kountz undermines the Teska analysis and eligibility conclusions.

Councilman Hopkins asked Teska Associates to provide the data used for analysis to the public for transparency. Mr. Brown said greater documentation can be provided, and added analysis is still needed to determine if criteria are met. He said the area had been studied beginning eight years ago.

Mr. Brown said Teska takes a conservative approach regarding what costs can be covered in the TIF District.

Councilwoman Montford asked if the businesses along Liberty Drive and Sea Level Diving are going to remain as they are, and are not included in the redevelopment plan. Ms. Cowlin said that is correct and stated that tonight's public hearing for the TIF District is not tied to a specific redevelopment plan. She said there are properties included in the TIF District that are not included in current redevelopment plans, but that could possibly benefit in the future.

Councilman Philpot agreed with Councilman Hopkins regarding the addition of more information in the table for transparency.

Council Inquiries and Requests

None.

Adjourn

There being no further business, Councilman Hopkins moved to adjourn the meeting at 8:37 p.m. Councilman Philpot seconded the motion. On voice vote, all present voted yes. Motion passed.

https://ecode360.com/documents/CR2206/public/671792708.pdf